Indonesia's State Budget Shows a Deficit of Rp77.3 Trillion in the First Half of 2024

The Ministry of Finance (Kemenkeu) reported that the state budget (APBN) recorded a deficit of Rp77.3 trillion in the first half of 2024.

This figure is equivalent to 0.34% of the Gross Domestic Product (GDP) and a plunge of 150.8% compared to the first half of 2023 (year-on-year/yoy), which recorded a surplus of Rp152.3 trillion.

"The 2024 APBN is designed to have a deficit of Rp522.8 trillion, so the realized deficit of Rp77.3 trillion is still within the range of our APBN," said Finance Minister Sri Mulyani in a meeting with the House of Representatives on Monday (8/7/2024).

Sri Mulyani also stated that the designed APBN deficit for the entire year is 2.29% of GDP.

The APBN deficit in the first half of this year was driven by a decrease in revenue and an increase in government spending.

State revenue realization in the first half of 2024 reached Rp1,320.7 trillion, equivalent to 47% of this year's APBN target, which totals Rp2,802.3 trillion.

This revenue realization decreased by 6.2% (yoy) compared to the first half of last year.

Meanwhile, the realization of government spending amounted to Rp1,398 trillion, equivalent to 42% of this year's APBN ceiling, which totals Rp3,325.1 trillion.

This spending realization surged by 11.3% (yoy) from the first half of last year.

"The increase in government spending is mainly related to the role of the APBN as a shock absorber to anticipate global volatility, protect people's purchasing power, and support national development priorities," said Sri Mulyani.